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BAC

Bank of America completed or approved a total of $15.8 billion in
consumer relief for about 164,000 homeowners as of September 30 through
programs established under the National Mortgage Settlement. Quarterly
progress reports from all five banks involved in the agreement with
federal and state governments will be filed today with participating
state attorneys general and the federal program monitor.

Bank of America’s performance across all programs reflects significant
gains during the third quarter, and the bank reinforced that it is on
track to meeting its total financial obligations within the first year
of the three-year agreement. Progress across consumer relief programs
through September 30 includes:

First-Lien Principal Forgiveness - 30,000 customers were approved or
had completed first-lien modifications providing $4.75 billion in
principal reduction. Additionally, $230 million in pre-settlement
forbearance has now been completely forgiven.

Home Equity Relief - Nearly 45,000 customers had received a qualifying
modification or complete extinguishment of a home equity loan or line
of credit, totaling $2.5 billion in relief.

Other Programs - More than 62,000 customers have completed qualifying
short sales or deeds-in-lieu of foreclosure, providing a total of $7.4
billion in relief from unpaid principal balances on the loans. In
addition, the bank provided an additional $617 million combined in
enhanced relocation assistance and pre-settlement deficiency waivers.

Interest Rate Relief – In implementing the settlement programs, Bank
of America’s priority was to establish traction with first-lien and
home equity forgiveness programs to assist customers at greatest risk
of foreclosure. With momentum now built in these programs, the bank is
quickly ramping up activity on its interest rate reduction program for
borrowers who are making on-time payments but have limited or no
equity in their homes. As of October 31, 23,000 homeowners – more than
half of the bank’s estimated eligible population - have been offered
this assistance. The majority of this activity has occurred since the
end of September and, as a result, will be reflected in completed rate
reductions in future quarterly reports. Through September 30,
approximately 1,000 rate reductions were completed, providing interest
rate relief on loans representing nearly $250 million in unpaid
balances.

Bank of America customers in all 50 states have received assistance from
the settlement programs, with the largest numbers of customers
benefiting to date residing in California, Florida, New York, New
Jersey, Illinois, Maryland, Arizona and Nevada.

Principal reductions on first liens

Of the 30,000 homeowners approved for offers of first-lien principal
reduction, nearly 5,800 had completed their required three monthly trial
payments and converted to a completed modification as of September 30.
About 85 percent of those approved for trial plans are successfully
completing the process.

The program is resulting in an average of nearly $150,000 in reduced
principal balance and 35 percent reduction in monthly payments.

Bank of America is offering principal reductions on loans it owns and
services, as well as loans it services for other mortgage investors
under delegated authority agreements. Fannie Mae, Freddie Mac, FHA, VA
are not participating in the principal reduction program.

Second-lien extinguishments and modifications

The overwhelming majority of assistance to second-lien holders – more
than $2.4 billion of the $2.5 billion total in home equity relief
through September 30 – has been provided through home equity debt
elimination and extinguishment of the lien, releasing any claim to the
mortgaged property. The average financial relief provided through lien
extinguishment to about 43,000 customers is more than $56,000.

About 1,400 additional loans that did not meet the parameters of the
extinguishment program have been modified, reducing the balances owed by
a total of $100 million.

The second-lien extinguishment and modification programs are intended to
place the homeowners in an improved financial situation by reducing
their monthly debt obligations and, potentially, help them regain equity
in their property. Only loans that are both owned and serviced by Bank
of America qualify for these programs under the settlement.

Interest rate reductions

Bank of America is providing interest rate reductions at no cost to
qualified customers who have remained current on their first-lien
mortgage payments but owe more than 80 percent of the value of their
home today.

The bank’s process features rate reduction with no associated fees or
costs and allows eligible homeowners to benefit from an expedited
approval process with significantly reduced documentation requirements.

Currently, Bank of America is reducing the interest rate on qualifying
loans to 4.25 percent. The individual modified rate will be offered on
the basis of market rates in effect at the time the homeowner’s
eligibility is confirmed. Bank of America estimates that eligible
customers will realize nearly a 2 percent average reduction in rate,
which may provide hundreds of dollars in savings on their monthly
mortgage payments, depending on their principal balance and loan terms.
The interest rate reduction program is available on loans that are both
owned and serviced by Bank of America and meet certain other criteria.

Short sales and deeds-in-lieu

While Bank of America’s first goal is to keep customers in their homes,
transition becomes the inevitable or chosen route for some customers. In
these cases, Bank of America encourages consideration of a short sale or
deed-in-lieu as alternatives to foreclosure because they are less
disruptive for the borrower, have less negative impact on credit
reporting and can benefit local housing market conditions.

Borrowers completing short sales or deeds-in-lieu may receive additional
relief under the settlement through enhanced relocation assistance
payments above $1,500 and permanent waivers of the deficiency amount.

Servicing standards

More than 300 servicing standards were established in the settlement,
covering loss mitigation, foreclosure and bankruptcy documentation and
processes; third-party vendor oversight; restrictions on dual-tracking,
and requiring a single point of contact, among other categories. Bank of
America is in compliance with the requirements of all of the servicing
standards.

Bank of America

Bank of America is one of the world's largest financial institutions,
serving individual consumers, small- and middle-market businesses and
large corporations with a full range of banking, investing, asset
management and other financial and risk management products and
services. The company provides unmatched convenience in the United
States, serving more than 55 million consumer and small business
relationships with approximately 5,500 retail banking offices and
approximately 16,300 ATMs and award-winning online banking with 30
million active users. Bank of America is among the world's leading
wealth management companies and is a global leader in corporate and
investment banking and trading across a broad range of asset classes,
serving corporations, governments, institutions and individuals around
the world. Bank of America offers industry-leading support to more than
3 million small business owners through a suite of innovative,
easy-to-use online products and services. The company serves clients
through operations in more than 40 countries. Bank of America
Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial
Average and is listed on the New York Stock Exchange.